Harmful Beliefs Cause You to Accomplish 95 Percent Less Than Your Potential

ign="center">				being the best in the world at what they were
In many organizations, dangerous beliefs destroy				doing. Why were they so confident? It's pretty
almost all opportunities for improvement. In this				simple in most cases. These braggarts had little
article, I will expose some of the worst beliefs to				knowledge about what anyone else was doing.
avoid and explain ways to avoid all dangerous				I've come to realize that such statements are
beliefs.				signs of ignorance, marking a sizeable
When the CEO Speaks, People Take Action				misconception stall.
Management authority Peter Drucker told me that				STALLBUSTERS
one of the most dangerous beliefs in organizations				Encourage Unmasking False Assumptions
is that an increase in brains comes with being				A company had assumed for decades that
promoted. Here's verification of that observation:				advertising would work only when demand was
Executive assistants at well-run companies were				highest for its seasonally consumed food, yet
asked what was the single, most important thing				others promoted similarly seasonal foods all year
their CEOs could do better. The aides spoke				around. Eventually, an advertising test was run
almost unanimously in reporting that anything the				during the lean part of the year, and sales
CEO said was treated as gospel. Underlings, for				promptly took off.
instance, scramble to make changes even when				Here are questions to help you avoid making such
the CEO was only asking an innocent question.				false assumptions:
The CEOs assume that the response would come				ï¿½ What are the things that your
at little or no cost from someone who already				organization assumes will almost always work?
had the answer. Some executive assistants				ï¿½ What do managers in your organization
estimated that 25 percent of executive and				assume will seldom or never work?
managerial time in their companies was taken up				ï¿½ What do your managers assume will
with answering such casual inquiries and making				probably happen?
changes that hadn't, in fact, been requested. The				ï¿½ What are the things that your
assistants wished someone would advise their				organization assumes will be unlikely to happen or
CEOs to stop asking casual questions and making				will never happen?
off-hand comments because the rest of the				ï¿½ On what beliefs are these assumptions
organization operates on the misconception that				based?
these words are major priorities on which careers				ï¿½ Have those beliefs been checked
will rise and fall.				recently?
I'd Rather Do It Myself				ï¿½ Are those beliefs still true?
Imagine you are taking a walk and stop to pick up				Identify the False Assumptions That Need to Be
a dime. While you are focused on that one-tenth				Immediately Challenged
of a dollar, a five-dollar bill floats by. Someone else				Some misconceptions require more immediate
grabs the five-dollar bill. Grabbing that dime cost				correction than others. Here are questions to help
you $4.90. Ignorant of what they are missing,				you set priorities for where to turn your attention
organizations regularly incur such large opportunity				first:
costs because these lost profits don't show up on				ï¿½ Which false assumptions have large
the accounting statements. As long as an activity				potential consequences?
ekes out an apparent accounting profit on its				ï¿½ Where can your organization's actions
investment that's above the interest rate on U.S.				make the largest difference in offsetting false
Treasury notes, corporate financiers are happy.				assumptions?
That misconception keeps many enterprises busy				ï¿½ When is the best time to act to get
with tasks that can be much better performed				the most benefit or avoid the most harm?
by others, albeit at a higher out-of-pocket cost.				ï¿½ What is the minimum evidence to
But who cares if the out-of-pocket cost is higher				indicate that you should act immediately?
if the resulting returns are also higher?				Use Assumptions That Reflect Actual and Critically
Peter Drucker has gone further in observing that				Sensitive Conditions
outsourcing should be used to reduce the tasks				In most cases, no one will know what's going to
that management must do so that more				happen in advance. In the same way that the
management time can be spent on the few tasks				Titanic's designers didn't think about sideswiping an
that add the most value to the firm. The actual				iceberg, no one will forecast such unusual events.
cost of the outsourcing, he has stated, should be				You can only prepare by being humble in assuming
a secondary consideration.				that many things can go wrong and work on
Cutting Costs Can Slash Profits Instead				scenarios to prepare for those improbable, but
Cost reduction seems like something you should				highly significant, events.
pursue whenever possible. But that focus can be				Open your mind to new ways of thinking about a
a profit-reducing trap. Minimize costs in one part				volatile, unpredictable future with these questions:
of a process, and costs will swell in every other				ï¿½ What assumptions have worked best in
part of the process. For example, if you run an				the past for organizations that operated in
expensive machine as little as possible, you may				circumstances somewhat like yours?
have to pile up inventory in the rest of the				ï¿½ Which of these assumptions fit your
production process to adjust for the sporadic use				organization's values and style?
of the machine. Equipment used to further				ï¿½ Which of these assumptions would be
process what the machine produces will also be				received most enthusiastically by users of your
idle when waiting for more semifinished materials.				offering, customers, employees, partners,
The ultimate irony is that organizations that pride				suppliers, shareholders, lenders, and the
themselves on cost cutting usually show little or				communities you serve?
no volume growth. Equal energy put into providing				*********
new offerings that are superior in their benefits				With these new perspectives, you can contain
might, by comparison, expand profits by as much				and eliminate dangerous beliefs that deny you and
as many decades of normal cost cutting.				your organization your full potential to accomplish
"We Use All the Most Up-to-Date Practices":				20 times more with the same time, effort, and
Hardly!				resources.
Almost every organization I have ever visited				Copyright 2007 Donald W.
was filled with people who prided themselves at

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Harmful Beliefs Cause You to Accomplish 95 Percent Less Than Your Potential